# Hard to short the dollar at 5% yield | Convera

> Analysis notes the euro has been unresponsive to higher yields as Germany entered recession and the ECB remained hawkish, while the Fed repricing lifted the dollar. EUR/USD had fallen 2.7% over three weeks, with markets pricing 50 basis points of ECB hikes.

- Date: 2023-05-26 · published 2023-05-26T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/36158-hard-to-short-the-dollar-at-5-yield-convera
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Divergence between Fed and ECB policy expectations supports the dollar and pressures euro-priced demand for US commodities, while European recession weakens import demand for feed.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-07-01 | [Why has the dollar been so strong – and can it continue?](https://feedsoft.ai/events/40856-why-has-the-dollar-been-so-strong-and-can-it-continue.md) | -2.8% | -2.6% |
| EURUSD | 2019-03-08 | [FX: Dollar against the low yielders \| articles \| ING THINK](https://feedsoft.ai/events/60268-fx-dollar-against-the-low-yielders-articles-ing-think.md) | +0.8% | +0.0% |
| EURUSD | 2016-11-16 | [Dollar index surges to 14-year high](https://feedsoft.ai/events/8327-dollar-index-surges-to-14-year-high.md) | -1.0% | -0.7% |
| EURUSD | 2023-10-27 | [FX Daily: Stark growth gap makes the dollar even harder to sell \| articles \| ING THINK](https://feedsoft.ai/events/33842-fx-daily-stark-growth-gap-makes-the-dollar-even-harder-to-sell-articles-ing.md) | +0.8% | +3.8% |
| EURUSD | 2024-11-06 | [Trump presidency lifts Wall St to record high; dollar, Treasury yields surge](https://feedsoft.ai/events/5809-trump-presidency-lifts-wall-st-to-record-high-dollar-treasury-yields-surge.md) | -3.2% | -3.2% |
| DXY | 2022-08-29 | [Time to short the US dollar? - MacroBusiness](https://feedsoft.ai/events/40297-time-to-short-the-us-dollar-macrobusiness.md) | +0.6% | +4.4% |
| DXY | 2018-04-27 | [And The U.S. Dollar?](https://feedsoft.ai/events/65691-and-the-u-s-dollar.md) | +0.7% | +1.9% |
| DXY | 2024-04-28 | [US dollar, yields look set to close the gap with commodities](https://feedsoft.ai/events/30630-us-dollar-yields-look-set-to-close-the-gap-with-commodities.md) | -0.7% | -1.1% |

## Sources

- convera.com: https://convera.com/blog/market-insights/fx-research/daily-market-updates/hard-to-short-the-dollar-at-5-yield/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.